The economic impact of Hurricane Sandy will be felt for a long period of time. The New York Stock Exchange was shut down for two days due to weather, and the major business centres of New York, Philadelphia, and Boston were all but shut down. Not to mention damage to infrastructure and weather related impacts and one begins to wonder how this storm starts to impact the world?
The answer is this: The supply chain will be disrupted, prices will soar until they hit the price ceiling, and will likely stay there for some time. Not since Katrina has the USA faced a more expensive natural disaster, and in what many feel is the worlds financial center. Scarcity of items such as gasoline is bound to occur while New England rebuilds itself. And rebuild itself it will.
There will be economic setbacks, prices globally for some products may rise, etc. But the world’s economy will survive. It survived Katrina and Rita in 2005, it survived the Tohoku earthquake of Japan in 2011, and it will survive Hurricane Sandy. In the meantime we will just have to shell out more money for certain goods, and wait patiently for the supply chain to correct itself after Sandy’s attack
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